A single-family office needs no specific licence in Luxembourg or the Netherlands; a multi-family office is regulated in both. Luxembourg is stronger for pooled investments, private equity and international families, with the SOPARFI, SPF and SCSp. The Netherlands is stronger for families with Dutch operating companies, using a B.V. and a STAK. What makes either work is substance: decisions, directors and, as it grows, a team in the country.
What a family office actually is
A family office is the team and the structure that manage a family's wealth: investments, companies, property, tax, reporting and the next generation. A single-family office serves one family; a multi-family office serves several and is, in effect, a regulated financial business.
Single-family office
Serves one family; usually no specific licence in Luxembourg or the Netherlands.
Multi-family office
Serves several families; licensing and supervision apply.
Outsourced office
A small core team with banks, administrators and advisers doing the rest.
Entities underneath
Holding, management company, portfolio vehicles, control layer.
Family office in Luxembourg
- A dedicated law since 2012. The law of 21 December 2012 defines family office activity and reserves it, for multi-family offices, to authorised family offices and regulated professionals; single-family offices are outside it.
- The vehicle toolbox. SOPARFI holding, SPF for the private portfolio, SCSp for family pools and co-investments, RAIF or SICAR when outside investors join.
- Fund know-how. Europe's largest fund centre: managers, depositaries and administrators for any strategy.
- Taxes. A SOPARFI pays about 23.87% in Luxembourg City with a participation exemption; the SPF 0.25%; transparent SCSps none at entity level.
- Substance. Board and decisions in Luxembourg; a management company with staff for larger offices.
Family office in the Netherlands
- No dedicated licence. A single-family office needs none; serving third parties brings in the financial supervision act, the AFM and the fund manager rules.
- The vehicle toolbox. B.V. holding with participation exemption, STAK to separate control from value, cooperative or CV for co-investments.
- Taxes. 19% corporate tax up to EUR 200,000 and 25.8% above; box 2 for the family when profits are paid out.
- Succession. Business succession relief (BOR) for qualifying company shares, combined with STAK certificates.
- Substance. Dutch-resident directors, decisions and records in the Netherlands; payroll for the team.
Luxembourg is where families pool and invest. The Netherlands is where families who own companies keep control of them. The best offices use both.
Luxembourg vs Netherlands for a family office
| Luxembourg | Netherlands | |
|---|---|---|
| Specific family office law | Yes, since 2012 (multi-family) | No |
| Single-family office licence | Not required | Not required |
| Portfolio vehicle | SPF at 0.25% | B.V. at 19% and 25.8% |
| Control layer | Share classes, SCSp general partner | STAK certificates |
| Pooling with outsiders | SCSp, RAIF, SICAR | CV, cooperative, Dutch funds |
| Treaty network | Wide | Wide |
| Best for | International families, PE, funds | Dutch companies, succession |
Plan your family office
The result updates with each answer.
Plan your family office
Six questions. You get the jurisdiction, the entity stack, the licence position and what substance it needs.
In both countries, but AML and substance still apply.
Authorisation in Luxembourg; AFM rules in the Netherlands.
Holding, management company, portfolio and control layers.
Luxembourg for pooling, the Netherlands for company control.
Family offices in Luxembourg and the Netherlands: frequent questions
Do I need a licence for a single family office in Luxembourg?
Generally no. Luxembourg's family office law of 21 December 2012 targets offices serving several families. A single-family office serving its own family needs no family office authorisation, but it still follows company law and anti-money-laundering rules.
What about a multi-family office in Luxembourg?
Serving more than one family requires authorisation as a family office, unless the provider already holds a regulated status such as a bank, investment firm, lawyer, chartered accountant or auditor. Managing pooled third-party money can also bring in the fund manager rules.
Is there a family office licence in the Netherlands?
No dedicated one. A Dutch single-family office needs no licence, but managing investments or advising for third parties falls under the financial supervision act and the AFM, and pooled vehicles under the fund manager rules.
Luxembourg or the Netherlands for a family office?
Luxembourg is stronger for pooled investment vehicles, private equity and multinational families; the Netherlands for families with Dutch operating companies and a STAK-based control structure. Many families combine both.
What structures does a family office use?
Typically a holding company at the top, a management company employing the team, a portfolio vehicle such as an SPF or a fund, and a control layer such as a STAK or share classes for the next generation.
How much substance does a family office need?
Enough to make the decisions where the companies are resident: board meetings, qualified directors, records and, as the office grows, its own staff and premises.